NYSE$ECVT

Ecovyst Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

PQ Group reported second quarter results with net income of $16 million and Adjusted EBITDA of $113 million, demonstrating resilience and effective cost management amid macroeconomic challenges.

PQ Group Holdings Inc. reported a decrease in sales by 16.7% compared to the same period in 2019, primarily due to COVID-19 impacts. However, net income was $15.9 million, and Adjusted EBITDA was $113.0 million. The company is reinitiating 2020 financial guidance and raising expectations for annual Adjusted free cash flow.

  • Sales decreased by 16.7% year-over-year, mainly due to COVID-19 impacts.
  • Net income was $15.9 million with diluted EPS of $0.12.
  • Adjusted EBITDA was $113.0 million with a margin of 28.2%.
  • The company is reinitiating 2020 guidance and raising 2020 Adjusted Free Cash Flow expectations.

Headline financials

Total Revenue

$360M

Previous: $432M-16.7%
EPS (adj)

$0.22

Previous: $0.31-29.0%
Adjusted EBITDA

$113M

No prior period
Adjusted EBITDA Margin

28.2%

No prior period
Capital Expenditures

-$50.5M

Previous: -$65.5M+22.9%
Free Cash Flow

-$34.6M

Previous: -$34.9M+0.9%
Net Income

$15.9M

Previous: $30.6M-47.9%
Operating Income

$41.2M

Previous: $70.3M-41.4%
Gross Profit

$92.8M

Previous: $115M-19.6%
Cash & Equivalents

$88.6M

Previous: $82.2M+7.8%
Total Assets

$4.25B

Previous: $4.44B-4.4%
Stock-Based Comp

$7.99M

Previous: $5.37M+48.8%

Revenue & EPS history

Ecovyst · Revenue · Quarterly

$360M

Q2 2020-16.7%vs Q2 2019
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Ecovyst · $148M total across 1 segment · Q3 2023

  • Ecoservices
    $148M-24.6%

Forward guidance

PQ Group provided full-year 2020 guidance which includes sales of $1,430 to $1,460 million, Adjusted EBITDA of $410 to $425 million, Adjusted EBITDA margin of ~27% in line with 2019 margins, Adjusted diluted EPS of $0.67 to $0.86 and Adjusted free cash flow in the range of $145 to $155 million.

Tailwinds

  • Sales of $1,430 to $1,460 million
  • Adjusted EBITDA of $410 to $425 million
  • Adjusted EBITDA margin of ~27% in line with 2019 margins
  • Adjusted diluted EPS of $0.67 to $0.86
  • Adjusted free cash flow in the range of $145 to $155 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.5%

Avg return

Earnings day

-1.9%

Avg return

5 days after

+0.2%

Avg return

30 days after

49%

20 / 41 earnings

Positive

+19.6%

Q3 2024

Best reaction

-29.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%+0.1%-8.5%
Q4 2025+1.1%+1.3%+13.4%
Q3 2025-1.3%-5.5%+10.8%
Q1 2025+3.5%+13.0%+24.6%
Q4 2024-14.4%-18.6%-22.2%
Q3 2024+19.6%+22.1%+24.8%
Q2 2024-29.9%-34.8%-24.7%
Q1 2024+3.0%+2.6%-2.2%
Q4 2023-1.3%-7.6%+14.0%
Q3 2023+4.4%+2.0%+9.0%
Q2 2023-17.2%-18.3%-14.4%
Q1 2023-7.1%-10.3%-8.5%
Q4 2022-1.4%+6.6%+4.8%
Q3 2022-5.3%-2.8%-7.4%
Q2 2022+5.2%+4.5%-4.6%
Q1 2022-10.2%-13.2%-7.5%
Q4 2021+9.4%+10.3%+19.8%
Q1 2016-16.5%-24.4%-24.2%
Q3 2021+3.6%+5.1%-22.1%
Q2 2021+0.8%+7.0%-15.7%
Q1 2021+1.9%+5.3%+9.5%
Q4 2020+0.3%+0.3%-6.4%
Q3 2020-3.4%-5.3%+9.2%
Q2 2020-8.2%-8.9%-11.2%
Q1 2020-1.1%+4.5%+19.7%
Q4 2019+0.5%-9.2%-37.9%
Q3 2019-0.2%-0.2%-3.3%
Q2 2019+7.5%+10.3%+9.2%
Q1 2019-0.1%-2.0%-1.0%
Q4 2018-2.2%-2.5%-9.4%
Q3 2018+1.9%-4.8%-6.4%
Q2 2017-3.0%-1.9%-2.2%
Q2 2018+0.2%-0.1%-0.8%
Q1 2017-0.1%+3.8%+27.6%
Q1 2018-2.6%-1.0%+25.3%
Q2 2016-4.3%-3.8%+3.2%
Q4 2015-4.3%-3.8%+3.2%
Q4 2017+3.5%+4.1%+8.7%
Q3 2016+0.7%-0.3%+4.4%
Q4 2016+0.7%-0.3%+4.4%
Q3 2017+1.3%-0.6%+3.3%

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